Still confused about the Arrears Zone? Let us explain with an example:

John’s Pay Schedule:

John Smith works shifts in July (1st-31st) and gets paid for them on August 10th.

• For the next month, his shifts from August (1st-31st) are paid on September 10th.
• This means John is on an Arrears schedule.
• He finished his pay period on July 31st, and his new August pay period started on August 1st. But he has not yet been paid for those July earnings.
• Between August 1st and 9th, he will be in the Arrears Zone.
• He will then be back in the Arrears Zone the next month, between September 1st and 10th, where he will have access to both August's and September's earnings.

What Happens When John Transfers?

Any transfers John makes between July 1st-31st will be taken from his July paycheck, paid on August 10th.

If John transfers £50 on July 20th, that amount will come from his August 10th paycheck, as it is outside the Arrears Zone However, from August 1st-9th, John can get wages from both his July and August pay periods, putting him in the Arrears Zone.

Let us say John transfers £50 during this period on August 2nd:

• If John has not earned enough in August yet, the £50 will be taken from his July earnings and settled in his August 10th paycheck.
• If John has earned enough in August to cover the £50, it will come from his August wages, and the transfer will be settled in his September 10th paycheck.
• If John has earned some in both periods but not enough in August, the transfer will be split between paychecks.

Since the current pay period is prioritized, we will settle as much as we can from his September 10th paycheck, and the rest will come from July earnings and be settled on August 10th.

Let us have another example of an Arrears Zone Transfer:

On August 7th, John transfers £1,000 from his available balance of £1,200. At this point, John has not yet been paid for July So, his balance includes £1,000 from his July wages and £200 from August earnings so far. Because he is in the Arrears Zone, the transfer breaks down as follows:

• £200 comes from his August wages, to be settled in his September 10th paycheck.
• £800 comes from his July wages, to be settled in his August 10th paycheck.
• John will see this £1,000 transfer split under the Settlement Details section on his app’s transfer history:
• £800 will be settled on August 10th, and £200 on September 10th.
• On August 10th, he will then see the £200 carried over to his next paycheck on his Salary Statement.

Still with us?

Here at Stream, we believe in giving you access to your earned wages anytime, until payday. And do not worry—we will handle the calculations for you!